Breaking up is all the rage in today's corporate world - think TYC, SLE, KFT - and the buzz is...


Breaking up is all the rage in today's corporate world - think TYC, SLE, KFT - and the buzz is that Pepsico (PEP +1.7%) could join the gang. Edward Jones says PEP's combined value post-split could be $90/share, 49% above yesterday's close. The stock has trailed competitors by a large margin in the past year, and the firm is losing share to Coca-Cola (KO).
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Comments (2)
  • davidingeorgia
    , contributor
    Comments (2661) | Send Message
     
    Hmmm...could be good for PEP shareholders, but, as they say, the devil will be in the details. Especially after all the effort and money spent to get to be this big in the first place.

     

    Disclosure: long PEP
    21 Sep 2011, 12:14 PM Reply Like
  • Gabrioni
    , contributor
    Comments (11) | Send Message
     
    Do you mean spinoffs like Ralston Purina, The Limited, and Ford? Edward Jones says split could be $90/share?...of each Subsidiary? In October 1997, PEP spun off its $10 Billion businesses (Taco Bell, KFC, and Pizza Hut). Then in September 1997, Cambell Soup spun off to "streamline" operations. Why would PEP spin off now? The only reason I find is better access to capital (better than QE3), streamline operations, and improving credit management.
    21 Sep 2011, 01:25 PM Reply Like
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